Fair Value Measurement for Financial and Non-Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Measurement for Financial and Non-Financial Assets and Liabilities

Summary of valuation measurement of Company's financial assets and liabilities on a recurring basis by the fair value hierarchy levels

Assets and Liabilities Measured at Fair Value on a Recurring Basis
(Dollars in Thousands)

	Fair Value Measurements Using:
As of March 31, 2014	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments:
Securities of government sponsored enterprises	$	59,950	$	—	$	59,950	$	—
Mortgage-backed securities (residential)	89,325		—		89,325		—
Collateralized mortgage obligations (residential)	127,814		—		127,814		—
Corporate securities	39,242		—		39,242		—
Municipal bonds	26,107		—		26,107		—
Servicing assets	17,536		—		—		17,536

	Fair Value Measurements Using:
As of December 31, 2013	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments:
Securities of government sponsored enterprises	$	60,789	$	—	$	60,789	$	—
Mortgage-backed securities (residential)	90,869		—		90,869		—
Collateralized mortgage obligations (residential)	135,653		—		135,653		—
Corporate securities	39,530		—		39,530		—
Municipal bonds	25,596		—		25,596		—
Servicing assets	16,108		—		—		16,108

Schedule of identification of financial instruments measured at fair value on a recurring basis, by asset category with a summary of changes in fair value

(Dollars in Thousands)	At January 1, 2014		Net Realized Gains in Net Income		Unrealized Gains in Other Comprehensive Income (Loss)		Net Purchases, Sales and Settlements		Transfers In or Out of Level 3		At March 31, 2014		Net Cumulative Unrealized Loss in Accumulated Other Comprehensive Income (Loss)
Servicing assets	$	16,108	$	563	$	—	$	865	$	—	$	17,536	$	—

(Dollars in Thousands)	At January 1, 2013		Net Realized Gains in Net Income		Unrealized Gains in Other Comprehensive Income (Loss)		Net Purchases, Sales and Settlements		Transfers In or Out of Level 3		At March 31, 2013		Net Cumulative Unrealized Loss in Accumulated Other Comprehensive Income (Loss)
Servicing assets	$	9,610	$	107	$	—	$	704	$	—	$	10,421	$	—

Schedule of assets measured at estimated fair value on a non-recurring basis and the total losses resulting from these fair value adjustments

As of March 31, 2014

(Dollars in Thousands)	Level 1		Level 2		Level 3		Total		Net Realized Losses
Collateral Dependent Impaired Loans:
Commercial Real Estate	$	—	$	—	$	5,191	$	5,191	$	(81	)
Residential Real Estate	—		—		449		449		—
OREO:
Commercial Real Estate	—		—		8,434		8,434		(11		)
Residential Real Estate	—		—		535		535		—
Total	$	—	$	—	$	14,609	$	14,609	$	(92	)

As of December 31, 2013

(Dollars in Thousands)	Level 1		Level 2		Level 3		Total		Net Realized (Losses)/ Gains
Collateral Dependent Impaired Loans:
Construction	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	—		—		9,330		9,330		(6,134		)
Residential Real Estate	—		—		649		649		(72		)
OREO:
Commercial Real Estate	—		—		4,866		4,866		(26		)
Impaired Loans Held-For-Sale:
Commercial Real Estate	—		—		800		800		(769		)
Total	$	—	$	—	$	15,645	$	15,645	$	(7,001	)

Schedule of quantitative information about the significant unobservable inputs (level 3) used in the fair value measurement for asset and liabilities measured on a recurring and non-recurring basis

As of March 31, 2014

(Dollars in Thousands)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range *
Servicing assets	$	17,536	Discounted cash flow	Discount rate Constant prepayment rate	4.5% - 7.8% 9.0% - 9.6%
Collateral dependent impaired loans:
Commercial Real Estate	5,191		Sales comparison approach	Adjustment for difference between comparable sales and expected sales amounts	64.06%
Residential Real Estate	449		Sales comparison approach	Adjustment for difference between comparable sales and expected sales amounts	19.24%*
OREO:
Commercial Real Estate	8,434		Sales comparison approach	Adjustment for difference between comparable sales and expected sales amounts	29.01%*
Residential Real Estate	535		Sales comparison approach	Adjustment for difference between comparable sales and expected sales amounts	10.23%*

As of December 31, 2013

(Dollars in Thousands)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range
Servicing assets	$	16,108	Discounted cash flow	Discount rate Constant prepayment rate	4.5% - 7.8% 10.1% - 10.9%
Collateral dependent impaired loans:
Commercial Real Estate	9,330		Sales Comparison Approach	Adjustment for difference between comparable sales and expected sales amounts	54.64%*
Residential Real Estate	649		Sales Comparison Approach	Adjustment for difference between comparable sales and expected sales amounts	50.08%*
OREO:
Commercial Real Estate	4,866		Sales Comparison Approach	Adjustment for difference between comparable sales and expected sales amounts	15.08%*
Impaired Loans Held-For-Sale:
Commercial Real Estate	800		Sales comparison approach	Adjustment for difference between comparable sales and expected sales amounts	63.91%*

* Represents weighted average percentage

Summary of fair value estimates for financial instruments, as defined by ASC 825-10 "Financial Instruments", including those financial instruments for which the entity did not elect fair value option

		March 31, 2014				December 31, 2013
	Fair Value	Carrying		Estimated		Carrying		Estimated
(Dollars in Thousands)	Level	Amount		Fair Value		Amount		Fair Value
Assets:
Cash and cash equivalents	Level 1	$	160,999	$	160,999	$	124,064	$	124,064
Federal funds sold	Level 1	7,301		7,301		46,590		46,590
Deposits held in other financial institutions		21,006		21,006		21,019		21,019
Investment securities available-for-sale	Level 2	342,438		342,438		352,437		352,437
Investment securities held-to-maturity	Level 2	32		34		35		37
Loans receivable, net of allowance	Level 3	2,818,175		2,821,415		2,763,279		2,752,556
Loans held-for-sale	Level 2	27,791		31,220		47,557		52,169
FHLB stock	N/A	15,983		N/A		15,983		N/A
Accrued interest receivable	Level 2/3	8,293		8,293		8,350		8,350
FDIC loss-share indemnification asset	Level 3	2,169		2,169		4,856		4,856
Due from customer on acceptances	Level 1	889		889		1,517		1,517

Liabilities:
Non-interest bearing deposits	Level 1	$	869,598	$	869,598	$	832,152	$	832,152
Interest-bearing deposits	Level 2	2,053,611		2,009,008		2,039,358		1,993,563
Junior subordinated debentures	Level 2	71,610		65,717		71,550		66,186
Short-term FHLB advances	Level 1	140,000		140,000		180,000		180,000
Long-term FHLB advances	Level 2	10,292		10,186		10,325		10,238
Accrued interest payable	Level 1/2	2,462		2,462		2,418		2,418
Bank acceptances outstanding	Level 1	889		889		1,517		1,517

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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